Smuggled sugar hurts domestic firms

Friday, Oct 17, 2014 08:13

Smuggled sugar had stolen the market share of domestically-produced sugar. — Photo toquoc

HA NOI (Biz Hub) — Several sugar companies are saddled with increasing inventory because of imported and smuggled sugar, according to figures from the Ministry of Agriculture and Rural Development.

The figures showed that as of September 15, the sugar inventory at factories was estimated at 280,000 tonnes, a year-on-year increase of 58,690 tonnes, while the amount of sugar sold was 92,000 tonnes, a year-on-year decrease of 10,000 tonnes.

Nguyen Thanh Long, chairman of the Viet Nam Sugar and Sugarcane Association, told a forum for enterprises in the agricultural sector held here on Wednesday that the biggest difficulty of domestic sugar companies was smuggled sugar.

Long said sugar consumption at domestic factories was at 50,000 to 60,000 tonnes during the lean season and 80,000 to 90,000 tonnes during the peak season while it was previously 130,000 to 140,000 tonnes during the peak season. This is because smuggled sugar had stolen the market share of domestically-produced sugar.

He added that the permissive licence granted to sugar producers and businesses has resulted in an increase in smuggling activities. He also revealed that several companies have applied for licences to legalise the trading of smuggled sugar.

The massive import of sugar has also put pressure on domestic companies. Bui Thi Quy, chairman and general director of the Con Long My Phat Sugar and Sugarcane Company, said the Government allowed the importation of 70,000 tonnes of sugar, and this has led to a larger sugar inventory for domestic enterprises. — VNS

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